Investors can certainly boost their returns by concentrating on stocks trading between $1 and $10. However, a disciplined approach is necessary because many of these businesses are speculative and lack the underlying fundamentals to support their prices.
The bad behavior exhibited by lower-quality companies in this space can spook even the most seasoned professionals, which is why we started StockStory - to separate the good from the bad. Keeping that in mind, here are three stocks under $10 to swipe left on and some alternatives you should look into instead.
Asana (ASAN)
Share Price: $6.10
Born from the founders' frustration with the inefficiencies of email-based collaboration at Facebook, Asana (NYSE:ASAN) provides a work management platform that helps organizations track projects, set goals, and manage workflows in a centralized digital workspace.
Why Do We Avoid ASAN?
- Customers had second thoughts about committing to its platform over the last year as its average billings growth of 9.4% underwhelmed
- Competitive market dynamics make it difficult to retain customers, leading to a weak 95.7% net revenue retention rate
- Drawn-out sales process reflects its software’s integration hurdles with enterprise clients, restraining customer growth potential
Asana’s stock price of $6.10 implies a valuation ratio of 1.8x forward price-to-sales. Dive into our free research report to see why there are better opportunities than ASAN.
Alta (ALTG)
Share Price: $7.18
Founded in 1984, Alta Equipment Group (NYSE:ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.
Why Is ALTG Risky?
- Products and services are facing significant end-market challenges during this cycle as sales have declined by 1.1% annually over the last two years
- Cash-burning history makes us doubt the long-term viability of its business model
- Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders
Alta is trading at $7.18 per share, or 6.2x forward EV-to-EBITDA. If you’re considering ALTG for your portfolio, see our FREE research report to learn more.
American Outdoor Brands (AOUT)
Share Price: $9.60
Spun off from Smith and Wesson in 2020, American Outdoor Brands (NASDAQ:AOUT) is an outdoor and recreational products company that offers outdoor and shooting sports products but does not sell firearms themselves.
Why Should You Dump AOUT?
- Products and services aren't resonating with the market as its revenue declined by 4.3% annually over the last five years
- Poor free cash flow margin of 1.3% for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends
- Waning returns on capital from an already weak starting point displays the inefficacy of management’s past and current investment decisions
At $9.60 per share, American Outdoor Brands trades at 35.7x forward P/E. Check out our free in-depth research report to learn more about why AOUT doesn’t pass our bar.
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Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.